21Shares US LLC ("21Shares"), an affiliate of 21Shares AG, one of the world’s largest issuers of crypto exchange traded funds (ETFs), today announced the launch of the 21Shares Core Ethereum ETF (CETH). CETH is not a fund registered under the Investment Company Act of 1940, as amended (“1940 Act”), and is not subject to regulation under the 1940 Act, unlike most exchange traded products or ETFs. CETH is subject to significant risk and heightened volatility. The fund is not suitable for all investors.
With a total expense ratio (TER) of 0.21%, CETH’s investment objective is to seek to track the performance of Ether (ETH), the second-largest crypto asset by market capitalization. In addition, CETH represents 21Shares’ latest addition to its growing lineup of US products and underscores the firm’s growth and commitment to the US market.
Ethereum is a decentralized smart-contract platform that revolutionized the world of blockchain. ETH, the native crypto asset of the network, is the fuel that allows Ethereum to operate in the same way that we use oil to propel vehicles, heat buildings, and produce electricity in the physical world. Much like Bitcoin, Ethereum is a peer-to-peer network where transactions are recorded in a publicly available, decentralized ledger. What’s different about Ethereum is that it launched out of Bitcoin’s initial limitation as a simple settlement layer where people send and receive coins. From the start, Ethereum positioned itself as the infrastructure for building applications similar to websites or mobile applications on top of a fully decentralized internet. In other words, Ethereum provides a globally permissionless app store and a platform for Web3 – a new iteration of the world wide web – innovation.
Since 2018, 21Shares has pioneered the innovation of crypto asset exchange traded products (ETPs) globally, with listings on some of the biggest, most-liquid securities exchanges around the world, including London Stock Exchange, Nasdaq OMX, Euronext Paris and Amsterdam, Deutsche Börse Xetra, and SIX Swiss Exchange. This allows investors to gain exposure to crypto through their existing bank or brokerage, removes complexity around tax reporting, and offers investors better custody and operational risk management than holding physical crypto.
"21Shares is at the forefront of a financial revolution, as investor demand for crypto asset ETF continues to ramp up in lock-step with evolving regulatory frameworks around the world. Our mission – to make crypto assets more accessible to investors, and to bridge the gap between traditional finance and decentralized finance – is now more attainable than ever. There is a growing acceptance that crypto is here to stay and will play a role in the evolution of the financial system,” said Ophelia Snyder, Co-founder and President of 21Shares.
Snyder continued, “While Bitcoin is often classified closely with commodities, Ethereum presents a unique investment case. As a platform that fuels innovation and powers the next generation of the internet, Ethereum aligns more closely with technology investments, marking an exciting potential opportunity for investors. CETH, as the latest addition to 21Shares’ growing US product lineup, represents an important step for crypto asset accessibility to US investors and we’re thrilled to bring this product to the US market.”
CETH is 21Shares’ seventh product in the US and underscores 21Shares’ continued growth in the US market, which now includes over $3.2bn in assets under management and nearly 50 full-time employees.
Since its inception, 21Shares has a track record of advancing innovative crypto asset products, creating a bridge for investors between traditional finance and decentralized finance, and has demonstrated operational and client service excellence with a focus on transparency, risk management, and sustainability.
Dechert LLP provided legal advisory to 21Shares on the launch of the product. The Dechert team was led by financial services partners Allison Fumai and Neel Maitra and included associates Samuel Scarritt-Selman, Sergio Delatorre and Jannet Jassi; corporate partner Anna Tomczyk; and global tax partner Joseph Riley.